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The mobile devices user authentication services market has been growing at a CAGR of 23% during the forecast period (2020 - 2025). Intel is moving in the direction with the Authenticate solution in its new, sixth-generation Core vPro processor which can become a trend in future. It can incorporate a variety of hardware-enhanced factors at the same time to validate a user’s identity. Hardware authentication can be particularly important for IoT where a network wants to ensure that the thing trying to gain access to it is something that should have access to it. The most instantaneous application for the technology is for authenticating an endpoint in a traditional IT environment such as laptops, desktops, and mobile devices using Intel chipsets.
- Cloud-based multi-factor authentication is driving the market. Mobile is a key attention for today’s Cloud MFA solutions, where mobile options such as fingerprint scan, facial recognition deliver ease of use, making the authentication experience as frictionless as possible for users. SAASpass company provides cloud-based two-factor authentication to sign into applications and devices anywhere securely.
- Growing adoption of Bring Your Own Device (BYOD) Solutions is driving the market. The increasing demand for mobility in the workplace is causing IT departments to rethink how they allow users to access corporate data. BYOD programs are becoming more popular in large enterprises and focus of many organizations remains on securing BYOD, which increases the demand for mobile authentication services.
- However, false security and high cost is a key restraint for the market, as there is always possibility of mobile phones being stolen, potentially allowing the thief to gain access to the user’s accounts. Due to the requirement of specialized hardware, the total cost becomes high which is a major challenge for the market growth.
Scope of the Report
The mobile devices user authentication services has become vital in providing a unified view about enterprise-wide security and it introduces greater visibility and transparency in business processes of an organization in verticals such as BFSI, Healthcare, etc. Digitalization and virtualization in the SMBs have led authentication to become more pervasive and important in the current technology space.
Key Market Trends
Biometric in BFSI to Hold a Significant Share
- The demand for security is still a headlining topic in the financial industry and biometric authentication certainly addresses the consumer demand for protection. Many FinTech analysts predict the PIN number will be obsolete within the next few years and biometric authentication is quickly advancing as many banking institutions are adopting this new form of digital security.
- The provision for audio capturing with the increased availability of voice recognition services, which is a characteristic of biometric solution is available over HTTP-based APIs making it really simple to grant access during transaction through smartphone in multifactor authentification.
- HSBC recently launched fingerprint and Touch ID sign-in to its mobile banking app with many other banks to follow. This eliminates the pains of remembering passwords and suffering the dreaded account lock after too many password attempts. With this new technology, users are provided with enhanced user experience (UX) and security.
- Bank of America is one financial institution engaging a biometric convenience strategy with its new App Linking feature. With fingerprint scanning, customers can easily switch between the Bank of America, Merrill Lynch, Merrill Edge, and U.S. Trust apps without having to authenticate their information each time.
- Recently in Sep 2019, OneSpan, one of the global leader in software for trusted identities, e-signatures and secure transactions circulated that Volkswagen Bank, a wholly owned subsidiary of Volkswagen AG, has implemented OneSpan’s mobile application security to protect the bank’s financial transactions and help ensure PSD2 compliance while enabling a positive customer experience. The app also integrates mobile security suite to enable app security including biometric authentication.
Asia-Pacific Expected to Register the Fastest Growth
- The Asia-Pacific is anticipated to be the fastest growing region in the market because of a higher level of implementation of mobile devices for authentication purpose such due to bring your own device (BYOD) and choose your own device (CYOD) policies.
- In China, to strengthen the online security level, the internet banking service of the company provides customers with a comprehensive range of two-factor authentication tools to safeguard the designated transactions and designated investment transactions performed by customers via internet banking / mobile banking, which drives the market.
- Various government policies are being made to improve the authentication services in this region. Recently in Sep 2019, Unisys Corporation announced that the Queensland Department of Transport and Main Roads (TMR) in Australia has recontracted with Unisys to provide facial image processing technology and services for the state’s smart card driver license. It provides configurable application programming interfaces to integrate biometric authentication across physical and digital channels, including mobile devices.
- On June 2019, NEC Corp. entered the competition to lead Malaysia’s digital identification project, as the government prepares to introduce biometric identities for all of its 32 million citizens. NEC aspires to use its experience implementing digital biometric IDs in India as a blueprint for Malaysia, as Malaysia has one of the highest internet and mobile phone penetration rates in Southeast Asia, and this has spurred rapid growth in the country’s e-commerce sector and other internet-related industries.
- There is also a partnership, going on regarding financial insititutions clients authentication. For instance, on April 2019, the announcement is being made that Citi’s institutional clients in China, India, Singapore, Thailand and Vietnam can now access the CitiDirectBE mobile app via fingerprint or facial recognition. The solution eliminates the need for an app-based digital token. The CitiDirect BE Mobile App, coupled with biometric authentication capability, now enables clients to manage their institutional banking needs anytime and anywhere. This will effectively increase the market growth.
The mobile devices user authentication services market is fragmented as the market comprises of global and local players where the product penetration with innovation is growing. Software firms are also looking in this market which increases the rivalry among the players. Key players are CA Technologies, Symantec Corporation, OneSpan, etc. Recent developments in the market are -
- Sep 2019 - BioConnect announces the initiation of their Unified Mobile Access solution, enabling enterprises to leverage IT approved authenticators, like Duo Security, at physical access points. The retro-fit solution is not limited to door access only, its capabilities can also be implemented in data centers, IDF & MDF closets, server cabinets, machinery, vaults, and other equipment to provide additional step-up authentication security without requiring the replacement of existing access control systems, readers or cards.
- Aug 2019 - Imprivata and Vocera Communications launched a new partnership aimed at helping health systems provide easier authentication for clinical communication. The companies are combining Imprivata’s Mobile Device Access technology with the Vocera Collaboration Suite, which will embed authentication into shared clinical mobile devices and eliminate the need for manual logins.
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